Global Investing Giant Jim Rogers Warns of Cyclical Downturn ‘Soon’

“FreedomFest doesn’t just ride the wave, it invents the wave.” — John Fund, National Review

It was a triumph! Our 10th anniversary celebration of FreedomFest was a huge success, with over 2,100 subscribers, wealthy investors and concerned citizens joining us at the Paris Resort in Las Vegas. CNN did a major story on us, which you can watch here.

Are We Near the Stop in the Stock Market?

At FreedomFest, commodity guru Jim Rogers warned that the U.S. economy’s historic pattern of enduring a downturn every four to eight years indicates people should prepare for such a prospect to occur in the next 2-3 years. Worse, because today’s debt load is larger than in 2008, we could be in an even more severe problem the next time the economy falters.

“If you’re not worried, you are not knowledgeable,” Rogers said.

I chaired a session with Rob Arnott, who the Wall Street Journal labeled the “godfather of smart beta,” on the topic, “My Favorite Money-Making Strategy, and Investments to Avoid.” He warned against load funds, annuities, hedge funds and private equity, but liked my strategy of investing in quality companies that pay high and growing dividends. He and Cliff Asness wrote an academic paper entitled, “Surprise! Higher Dividends = Higher Earnings Growth.”

Arnott agreed with Rogers that the stock market is no bargain. In fact, we are within a year of enjoying a record — the longest bull market in history!

As the market crawls higher, some might be tempted to make fun of the Bears for continuing to bet against the stock market. For men like Jim Rogers though, it only adds more seriousness to their warning of a coming downturn.